Indonesia advances coal-fired power phase-out to 2040

Market: Coal
20/11/24

Indonesia plans to retire all coal-fired power plants within the next 15 years, advancing an earlier target of 2056, President Prabowo Subianto said today.

This follows from Subianto's address at the G20 Summit in Rio de Janeiro, Brazil, on 19 November, where he emphasised the importance of global collaboration to achieve green energy transition. He also claimed Indonesia is optimistic it can reach net zero emissions before 2050, a decade ahead of its previous commitment.

"We plan to build more than 75GW of renewable energy in the next 15 years [to replace coal-fired power]," Subianto added.

His claims come at a time when Indonesia's deputy minister of energy and mineral resources (ESDM) Yuliot Tanjung admitted in a speech today that the country's reliance on coal for electricity is still high.

Tanjung said the country has huge potential for solar and hydropower generation, owing to its geographical location, but they require technological developments and large investment.

Indonesia has the world's fifth-largest operating coal-fired power capacity of 52.31GW, with about 9.81GW more under construction, according to Global Energy Monitor data. Only about 15pc of Indonesia's total installed generation capacity of more than 90GW is currently powered by renewables.

New coal-fired projects have continued to be proposed this year, despite the Indonesian government's previous commitment in 2021 to stop building new coal-fired plants after 2023.

In addition to power generation, coal is also heavily utilised in Indonesian industry, which contributed to domestic coal production reaching a record 720mn t so far this year. Indonesia could also be on track for a new output record this year, with ESDM expecting 2024 output to surpass 800mn t, up from 775mn t in 2023, if the current output trend continues for the rest of this year.

Indonesia and the Philippines are the two most coal-reliant countries in southeast Asia, according to energy think-tank Ember.

By Ashima Sharma

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

News

06/12/24

Republicans weigh two-step plan on energy, taxes

Washington, 6 December (Argus) — Republicans in the US Congress are considering trying to pass president-elect Donald Trump's legislative agenda by voting first on a filibuster-proof budget package that revises energy policy, then taking up a separate tax cut bill later in 2025. The two-part strategy, floated by incoming US Senate majority leader John Thune (R-South Dakota), could deliver Trump an early win by putting immigration, border security and energy policy changes into a single budget bill that could pass early next year without Democratic support. Republicans would then have more time to debate a separate — and likely more complex — budget package that would focus on extending a tax package expected to cost more than $4 trillion over 10 years. The legislative strategy is a "possibility" floated among Senate Republicans for achieving Trump's legislative goals on "energy dominance," the border, national security and extending tax cuts, Thune said in an interview with Fox News this week. Thune said he was still having conversations with House Republicans and Trump's team on what strategy to pursue. Republicans plan to use a process called budget reconciliation to advance most of Trump's legislative goals, which would avoid a Democratic filibuster but restrict the scope of policy changes to those that directly affect the budget. But some Republicans worry the potential two-part strategy could fracture the caucus and cause some key policies getting dropped, spurring a debate among Republicans over how to move forward. "We have a menu of options in front of us," US House speaker Mike Johnson (R-Louisiana) said this week in an interview with Fox News. "Leader Thune and I were talking as recently as within the last hour about the priority of how we do it and in what sequence." Republicans have yet to decide what changes they will make to the Inflation Reduction Act, which includes hundreds of billions of dollars of tax credits for wind, solar, electric vehicles, battery manufacturing, carbon capture and clean hydrogen. A group of 18 House Republicans in August said they opposed a "full repeal" of the 2022 law. Republicans next year will start with only a 220-215 majority in the House, which will then drop to 217-215 once two Republicans join the Trump administration and representative Matt Gaetz (R-Florida) resigns. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Find out more

News

US House panel approves river infrastructure bill

06/12/24

News

06/12/24

US House panel approves river infrastructure bill

Houston, 6 December (Argus) — A US House of Representatives committee has approved a bipartisan bill that authorizes improvements to navigation channels by the Army Corps of Engineers (Corps) and maintenance and dredging of river and port infrastructure projects. The House Transportation and Infrastructure Committee advanced the Water Resources Development Act (WRDA) after several months of political wrangling to integrate earlier versions of the legislation approved by the House and Senate . The bill will head to the full House next week, said committee chairman Sam Graves (R-Missouri). This would be the sixth consecutive bipartisan WRDA bill since 2014 if passed by congress. WRDA is a biennial bill that authorizes the Corps to continue working on projects to improve waterways, including port updates, flood protection and supply chain management. WRDA will also "reduce cumbersome red tape", which will allow for quicker project turnarounds, Graves said. The bill authorizes processes to streamline work, he said. The bill also adjusts the primary cost-sharing mechanism for funding for lock and dam construction and major rehabilitation projects. The US Treasury Department's general fund will pay 75pc of costs, up from 65pc, with the rest coming from the Inland Waterways Trust Fund, which is funded by a barge diesel fuel tax. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Knight Hawk shuts Viper coal mine in Illinois

05/12/24

News

05/12/24

Knight Hawk shuts Viper coal mine in Illinois

Washington, 5 December (Argus) — US coal producer Knight Hawk Holdings has closed its Viper mine in Illinois after its main customer decided to switch suppliers. There are no other potential customers for the mine in central and northern Illinois, Knight Hawk president Jim Smith said. The landlocked operation is not near any rail loadouts and has no river access, making it difficult to reach other domestic and export customers. A drop in coal demand from its primary customer — City Water Light and Power in Springfield, Illinois — coupled with increased mining costs, made it difficult for Viper to compete for the generator's business, Smith said. The mine and the utility "had a great relationship for decades and worked in respect to achieve a more positive outcome", Smith said. The utility was Viper's largest and longest-running customer but it recently switched suppliers , replacing a long-term agreement with Viper with coal from Foresight Energy's Deer Run mine in Hillsboro, Illinois. The utility has significantly reduced its demand for coal in recent years, falling to about 400,000-500,000 short tons/yr from well over 1mn st in the past, after retiring three of its four generating units. The mine had "wonderful workers with incredible attitudes", and Knight Hawk has offered them the opportunity to seek positions at its southern Illinois mines, but few want to relocate more than two hours away, Smith said. A team of 20 people remain to conclude operations and begin reclamation. Production at Viper, which opened in 1983, mostly exceeded 2mn st/yr from 1997-2015, data from the US Mine Safety and Health Administration show. But production began to decline after that, as regional power plants were retired. Production ended in July. Output for the first three quarters was 246,266st, a 58pc decrease compared with the same nine months in 2023. Viper and Knight Hawk Coal are subsidiaries of Knight Hawk Holdings. By Abby Caplan Viper mine coal production ’000st Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Australian thermal coal exports drop on year in October

05/12/24

News

05/12/24

Australian thermal coal exports drop on year in October

Sydney, 5 December (Argus) — Australia's thermal coal exports dropped by 4.8pc on the year to 17.1mn t in October, because of subdued South Korean and Indian coal demand. Australian thermal coal exports to South Korea have been relatively low since the start of the year. South Korean energy providers bought 9.8mn t of Australian thermal coal between January-October, 17pc less than they did over the same period last year. On the other side of Asia, Indian thermal coal imports have been dropping in recent months, on the back of growing domestic coal production and declining coal-fired power generation. The country imported 122,196t on Australian thermal coal last month, substantially below the 1.5mn t purchased over the same period last year. Australia's two largest trading partners, China and Japan, accounted for 74.2pc of its October thermal coal exports, more than they have at any point since 2020. The two countries bought 29.3pc of the thermal coal sold by Australian firms in May 2021, and have been steadily increasing their coal market share since. Japanese coal imports from Australia fell by 6.4pc on the month to 5.9mn t in October, and may have continued to fall throughout November, according to recently released shipping records. The Japan Meteorological Agency also in early December forecast a warm winter for the county. The difference between Argus ' Newcastle average NAR 6,000kcal and 5,500kcal fob prices rose to $53/t in October, up by 38pc on the year. The value of 6,000kcal coal has remained relatively stable throughout that period, while the value of 5,500kcal coal has slid downwards. Australian mining firms received an average of $111.10/t for their coal in October 2023, down from $116/t a year earlier. Average Australian export coal prices have consistently lagged 2023 prices since the start of the year, although the gap between the two has narrowed from $137.90/t since January to $4.90/t. By Avinash Govind Australia thermal coal exports Oct '24 Oct '23 Jan - Oct '24 Jan - Oct '23 Total (mn t) 17.1 2.0 169.2 164.8 Value ($bn) 1.9 3.0 19.3 26.3 Average Price ($/t) 111.1 4.0 114.2 163.1 Average FX rate 0.7 0.6 0.7 0.7 ABS Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Australia’s Dartbrook mine prepares for first coal sale

02/12/24

News

02/12/24

Australia’s Dartbrook mine prepares for first coal sale

Sydney, 2 December (Argus) — New South Wales mining firm Australian Pacific Coal (APC) is planning to ship its first load of unwashed coal from the underground Dartbrook mine in December 2024, two months after reopening its Hunter Valley facility. APC will focus on producing thermal coal at the mine, and is also planning to test the coking potential of deposits around the site in early 2025. The company recently announced plans to produce 20,000t of coal at Dartbrook by November 2024, ramping up to 2.4mn t/yr by late 2026. APC is planning to increase coal production at Dartbrook during a period of weakening thermal coal demand. Coal exports from the Port Waratah Coal Terminals at the Port of Newcastle fell on the year in November for the second consecutive month. The Australian Office of the Chief Economist announced in September it was forecasting a 21.6pc drop in thermal coal exports between the July 2023 to June 2024 and 2025-26 financial years. Dartbrook sits alongside the Hunter Valley Rail Network, a set of lines connecting dozens of coal mines in New South Wales to the Port of Newcastle. However, APC will not be able to use the lines until it negotiates an access agreement with network operator the Australian Rail Track Corporation. The company must also sign agreements with terminal operators at the Port of Newcastle before it can ship coal out of New South Wales. APC's original Dartbrook resource consent was scheduled to expire in December 2022, but New South Wales' Land and Environment Court granted the company a five-year consent extension in late 2021. The company had been appealing for an extension for two years after an initial unsuccessful attempt. APC is currently working on another application to extend its consent by six years through to December 2033. APC's export preparations come alongside managerial changes at the firm. The company announced the resignation of its chief executive and managing director, Ayten Saridas, the same day it updated investors on Dartbrook. By Avinash Govind Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more